Question
Your company manufactures decorative aluminum kangaroos.Your boss has asked you to calculate, on an annual basis, how many kangaroos must be produced in order to
Your company manufactures decorative aluminum kangaroos.Your boss has asked you to calculate, on an annual basis, how many kangaroos must be produced in order to cover the annual fixed costs of the company.Since you were wise and took Principles of Marketing while at college, you know that this requires doing a Breakeven calculation.With the following information, what is the breakeven point in units for this product?
Sales price per aluminum kangaroo = $22
Total annual fixed costs of the business unit = $165,000
Average variable cost per aluminum kangaroo = $9
NOTE:Round UP to the nearest kangaroo
NOTE:Show your work - you may receive partial credit even if your final answer is incorrect
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